THE SOCIAL REPORT 2010–2011 THE SOCIAL REPORT 2010–2011 CONTENT 1 MINISTRY OF SOCIAL SECURITY AND LABOUR THE SOCIAL REPORT 2010–2011 Vilnius 2011 CONTENT 2 THE SOCIAL REPORT 2010–2011 Dear Readers of the Social Report, 2011 is the year when the economy, recovering after a deep crisis, is gradually climbing up, and exports and the gross domestic product are growing. However, the recovery of the labour market, the increase in wages and finally strengthening of the belief in the state’s power always take more time. Regrettably, we cannot trust only the ostensibly healing power of time; therefore, we had to seek appropriate solutions for individual problems. In 2010, amendments to the Law on Support for Employment were adopted, social insurance privileges to employers of persons without work experience were established, a structural reform of the Lithuanian Labour Exchange and local labour exchange offices was carried out, support from the European Social Fund was actively used, which resulted in the fall of the registered unemployment rate as of the beginning of 2011 to 11.45 per cent in July. The number of persons covered with social insurance has been growing respectively. In 2011, many important decisions, which caused long discussions in pursuit of a consensus, were also passed. The pension system reform was launched with a view to laying the foundations for long-term sustainability of the system and, together with further activation of the labour market, for reaching the balance in the State Social Insurance Fund Board budget. However, I do not intend to create an impression that the most important decisions are passed only in the ministry, the Seimas or the Government. Everyone of us may contribute, help others, offer their hand in a difficult situation and do a lot through combined efforts in their community. 2011 has been announced the European Year of Voluntary Activities. Through different projects and events, Lithuanian volunteer organisations have an opportunity to more widely disseminate information about their activities, attract new members, and get both young and elderly people interested. The Ministry of Social Security and Labour, being a coordinator of the implementation of this year’s activities, contributes to the promotion of volunteering within the limits of its competence, yet major work is done by hundreds and thousands of devoted people across the country. Seeking to simplify the handling of legal issues of organisations, in particular small ones, the ministry undertook the initiative to adopt the Law on Voluntary Activities. Voluntary activities of employees are also promoted by innovative enterprises, whereas the consolidation of socially responsible business and good relations between employers and employees are one of the basic preconditions for the development and strengthening of a welfare state which, despite emerging difficulties, is our common goal. I would like to express my gratefulness to all and everyone who contributes to making this goal a Lithuanian reality. Minister of Social Security and Labour Donatas Jankauskas 3 THE SOCIAL REPORT 2010–2011 CO–AUTHORS OF THE SOCIAL REPORT 2010–2011 INTRUDUCTION Lina Burbaitė Aušra Saukaitienė Stanislovas Valickas LABOUR MARKET, LABOUR RELATIONS AND WORKING ENVIRONMENT Gintarė Bužinskaitė Rasa Malaiškienė Raimonda Sneigienė Jurgita Vitkauskienė USAGE OF THE EU SUPPORT Liongina Beinoravičienė Eglė Mikolaitytė STATE SOCIAL INSURANCE AND PENSIONS Inga Barauskaitė Simona Polonskytė Ūla Urbaitė FAMILY POLICY, CASH SOCIAL ASSISTANCE FOR FAMILIES, CHILDREN AND youth policy Justina Alsytė Rima Kurlianskienė Tomas Milevičius Rūta Pabedinskienė SOCIAL scope and affairs of communities Almira Gecevičiūtė Elena Urbonienė Daiva Zabarauskienė EUROPEAN UNION MEMBERSHIP and INTERNATIONAL COOPERATION Jonė Eigirdaitė Karolina Anda Juodpusytė Coordinator – Kristina Vaitkevičienė The Administration of the Ministry of Social Security and Labour pays heartfelt thanks to the team of editors for their work preparing this edition CONTENT 4 THE SOCIAL REPORT 2010–2011 Contents 1. Introduction . .6 1.1. MISSION AND STRATEGIC GOALS OF THE MINISTRY . .8 1.2. PUBLIC RELATIONS AND COUNSELLING OF INDIVIDUALS . 13 2. LABOUR MARKET, LABOUR RELATIONS AND WORKING ENVIRONMENT ..............18 2.1. Labour Market .....................................................................18 2.2. REGULATION OF LABOUR RELATIONS AND WORK REMUNERATION . 37 2.3. WORKING ENVIRONMENT ............................................................49 3. Usage of EUROPEAN UNION support ...............................................64 3.1. SUPPORT FROM THE EUROPEAN UNION STRUCTURAL FUNDS . 64 3.2. OTHER EU SUPPORT . 80 4. STATE SOCIAL INSURANCE AND PENSIONS . .87 4.1. FINANCES OF THE STATE SOCIAL INSURANCE FUND ..................................87 4.2. IMPROVEMENT OF THE STATE SOCIAL INSURANCE SYSTEM ..........................91 4.3. CHANGES IN THE SYSTEM OF PENSIONS . .102 4.4. STATE SOCIAL ASSISTANCE BENEFITS . 111 4.5. STATE PENSIONS AND SUPPORT FOR VICTIMS........................................113 5. FAMILY POLICY, CASH SOCIAL ASSISTANCE FOR FAMILIES, CHILD AND YOUTH POLICY .117 5.1. FAMILY POLICY . 117 5.2. CASH SOCIAL ASSISTANCE FOR FAMILIES AND CHILDREN . .123 5.3. CHILD RIGHTS PROTECTION TENDENCIES ..........................................138 5.4. YOUTH POLICY IMPLEMENTATION IN LITHUANIA . .155 6. SOCIAL SCOPE AND AFFAIRS OF COMMUNITIES......................................160 6.1. EQUAL OPPORTUNITIES AND NON-DISCRIMINATION................................160 6.2. SOCIAL INTEGRATION OF THE DISABLED . 163 6.3. SOCIAL INTEGRATION OF OTHER GROUPS OF PERSONS..............................174 6.4. SOCIAL SERVICES AND SOCIAL WORK................................................178 6.5. ACTIVITIES OF COMMUNITIES AND NON-GOVERNMENTAL ORGANISATIONS . .187 7. EUROPEAN UNION MEMBERSHIP . 193 7.1. ACTIVITIES RELATED TO LITHUANIA’S MEMBERSHIP IN THE EUROPEAN UNION .....193 7.2. LABOUR MIGRATION . 214 7.3. GENDER EQUALITY . 220 8. INTERNATIONAL COOPERATION.....................................................223 8.1. PARTICIPATION IN THE ACTIVITIES OF INTERNATIONAL ORGANISATIONS ..........223 8.2. INTERNATIONAL TREATIES . 233 8.3. INTERNATIONAL agreements AND DRAFTS . .236 9. ANNEX..............................................................................`239 CONTENT 5 THE SOCIAL REPORT 2010–2011 Introduction Introduction1 The Social Report gives an overview of activities of the Ministry of Social Security and Labour in 2010-2011. The Social Report (hereinafter referred to as the Report) is drafted in the context of coping with challenges imposed on the Lithuanian system of social security by the national economic situation, i.e. when the country is experiencing high rates of unemployment and with different society levels facing financial difficulties. The necessity to solve the issues of financial assurance in the current period and create a future model of social security in order to ensure the financial sustainability of the budget of the State Social Insurance Fund has emerged. The social security system proved to be vulnerable and dependent on the economic condition of the country. The strategic objectives and programmes aimed at the achievement of these objectives are presented in the first chapter of the Social Report. The following objectives are pursued in 2010: reduction of the unemployment rate by applying the measures of active labour market policy; modernisation of the regulation of labour relations; assurance of a safe working environment and development of the social dialogue; strengthening of families’ independence and responsibility by seeking a family- friendly society and activeness of young people; assurance of integration of socially vulnerable groups of population; partnership of communities and non-governmental organisations with state and municipal institutions as well as their development and active participation in social activities. The Report describes the ministry’s initiatives in the field of public relations and discusses issues related to counselling of citizens and provision of information to the public. The second chapter of the Report is concerned with a thorough discussion of policy issues of the labour market. It covers employment and unemployment statistics and tendencies, the social security measures aimed at mitigating the consequences of the growth of unemployment as well as the means of encouragement of the labour market and presents the reorganisation of the system of vocational labour market training. It also reviews the reform of institutions implementing employment policy, during which the Lithuanian Labour Market Training Authority was eliminated and the Lithuanian CONTENT 6 THE SOCIAL REPORT 2010–2011 Introduction Labour Exchange was institutionally reorganised. Legal regulation of collective and individual labour relations as well as the implementation of the labour law is discussed. The Report assesses the condition of adherence to requirements of safety and health at work in companies and pays particular attention to the issues related to technical safety. The third chapter of the Report deals with the use of funds allocated by the European Structural Funds and reviews the implemented measures and the achieved results. The forth chapter analyses the field of social security and pensions. It describes the challenges the system of social security faced in 2010 and the current financial issues which were solved in a prompt manner, i.e. a timely and prompt payment